Canada’s central bank renewed its mandate, but with one fundamental change. The Bank of Canada (BoC) will now consider employment in addition to its goal of maintaining a 2% rate of inflation. The Governor stressed, it’s difficult to figure out when full employment is present. Two of Canada’s “Big Six” banks say full employment has […]
Canada’s oldest bank has a warning for homebuyers — prices don’t always rise. The uncharacteristic message came from BMO‘s chief economist Douglas Porter. Canada has seen few home price corrections, causing homebuyers to think of it as “risk-free.” Not just in Toronto or Vancouver, but virtually every market in the country, all simultaneously. BMO wants […]
Canada’s oldest bank is accelerating its forecast schedule for the central bank. BMO sees the first interest rate hike in April, after yesterday’s announcement from the Bank of Canada (BoC). That would be 3-months sooner than previously forecast, and the first hike is just the beginning. The forecast shows the overnight rate rising as much […]
The US Federal Reserve just scrapped the transitory narrative, and it was felt in Canada. Reserve Chairman Powell candidly dismissed the transitory inflation explanation. This immediately began to flatten Canada’s yield curve, according to BMO. The bank’s chief economist, Douglas Porter, highlighted this point to clients in his latest research note. His analysis shows the […]
Canadian real estate prices are soaring due to demand, but how much of it is excess? That’s a question BMO tackled in its latest research note, looking at home sale dollar volumes. The bank estimates excess demand driven by the central bank is now the size of 6 points of gross domestic product (GDP). Remember, […]
Still think the Canadian economy isn’t ready for a rate hike? A new analysis from BMO helps to make a convincing argument otherwise. The Bank of Canada (BoC) last hiked the overnight rate when unemployment fell to the current rate. That was back in 2017, when the country’s interest rates were also double the current […]
It’s time to take off the training wheels for Canada’s economy, which is now looking overstimulated. That’s the take from BMO‘s Douglas Porter, who sees stimulus coming to an end as early as this week. The Bank of Canada (BoC) is increasingly looking out of touch with reality. BMO, amongst others, now sees no justification […]
Canadian new home prices may have just seen the first sign of cooling in over a year. Statistic Canada (Stat Can) released the New House Price Index for September. The agency said fewer than half of cities saw new home prices advance last month — a drag on annual growth. Annual new home price growth […]
Canadian real estate prices will get post-election support, but risks are piling up. Sal Guatieri, a senior economist at BMO Capital Markets, wrote to clients on the boom and risk of real estate. He sees policy enthusiasm and a lack of inventory boosting existing-home prices near-term. As prices continue to rise, he warns the risks […]
Canadian real estate is in for a short-term boost, but market factors are likely to cool demand. BMO‘s Robert Kavcic’s latest research note covered Toronto real estate’s September boom. The bank’s senior economist sees a short-term boost to demand, as conditions tighten. This should be tempered by a rising rate environment in the not-so-distant future. […]
